HEART SENTRY - By lexingtonBioSciences.com

Thursday, January 28, 2010

HAYEK VS KEYNES - Economics 101

Great Depression 2?Image by Renegade98 via Flickr

Economic theory comes in many forms and with many faces of great (or goofy, depending on your own theory) economists attached. However, no matter what economic theory you conform to, you are bound to cross the wide path of the two greatest economists of the 20th century, Austrian Friedrich Von Hayek and John Maynard Keynes.

In the most basic sense, Keynesian economic theory is reflected greatly in the current morass in the markets as it's practitioners pump more and more liquidity into an already over liquid system. There is, however, just as strong an opposing view on economics and that is from those who are disciples (so to speak) of Friedrich Hayek.

Here is a great YouTube video, done as a rap, produced brilliantly by John Papola and Russ Roberts, which presents both sides, that of Keynes the "interventionist" and Hayek the "free market" maven. Yes, it is simplistic, but the message is strong, and it should send chills through new and old investors alike.

My personal sense is that the worst is yet to come, and may be here as soon as summer 2010.

In any event, it is not only entertaining but highly educational for the uninitiated. No matter where you stand, you will like this video. Enjoy!

Reblog this post [with Zemanta]

No comments: